How is unfair competition defined under federal law?
Under federal law, unfair competition refers to any type of business practice that is either contrary to established market principles of competition or tends to deceive the public in some way. It also includes behavior that misleads consumers or leads to the unauthorized reuse of a business’s intellectual property. Generally, federal law prohibits any behavior or practice that would create an unfair competitive advantage for one company or individual over another. Examples of unfair competition include false advertising, misrepresentation of facts, false representations of a product’s origin, and the unauthorized use of another business’s logo, company name, or other intellectual property. Unfair competition can also include price fixing, market allocation, and other anti-competitive behavior. In Pennsylvania, unfair competition is regulated by the state’s Unfair Trade Practices and Consumer Protection Law (UTCP). This law forbids any business practices that mislead or deceive consumers or take away from the independence or strength of competition. Such practices include false or misleading advertising, mislabeling of products, and the use of deceptive trade practices. In addition, the law prohibits businesses from entering into any agreements to restrain trade or prevent someone from competing in the market.
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